The Treasury Division believes that compliant authorities tax adjustments are permissible

April 8, 2021, 1:15 a.m.

The Treasury Department says that changes to income tax that merely bring a state or territory’s tax law in line with recent changes to the federal income tax law are permitted under a statement under the equalization provision of the recent business stimulus law.

  • NOTE: The law provides that funds cannot be used to offset certain lost revenue from tax changes in order to prevent them from being used to shut down sources of revenue created by tax cuts
  • The Ministry of Finance plans to issue “comprehensive guidelines” on this subject

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Max Zimmerman in Tokyo at mzimmerman90@bloomberg.net

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Max Zimmerman

Bloomberg News

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